Welder has some fixed costs that vary depending on the level…
Welder has some fixed costs that vary depending on the level of production. The fixed costs of the existing facility is $1,000 per month. When production is high, Welder can rent the facility next door for $500 per month. At either facility, the variable cost is $1 per unit. The sales price is $5 per unit. The result is that Welder has these cost structures over these ranges: 1: from 1-300 units the cost structure is, $1,000 + $1 per unit 2.: from 301-500 units the cost structure is, $1,500 + $1 per unit When does Welder have zero profits?
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